Digi International Inc (DGII)

Activity ratios

Short-term

Turnover ratios

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Inventory turnover 3.26 3.20 3.01 2.81 2.59 2.29 2.27 2.26 2.35 2.62 2.94 2.82 3.23 2.99 2.68 2.48 2.62 2.88 3.09 2.84
Receivables turnover 6.09 6.06 6.09 7.19 7.94 8.64 8.65 7.59 7.70 5.85 5.00 6.48 7.06 7.33 6.66 5.53 4.72 5.03 3.34 3.13
Payables turnover 7.33 8.70 8.42 11.38 11.23 8.89 9.11 5.99 5.31 5.78 6.68 6.39 6.29 7.49 7.28 6.03 4.82 6.11 7.68 5.81
Working capital turnover 6.51 5.25 5.14 4.65 5.55 5.60 5.04 5.19 5.57 4.82 4.33 4.13 1.64 1.60 1.66 2.91 2.57 2.33 1.94 2.06

Digi International Inc's inventory turnover has shown a relatively stable performance over the past two years, ranging from 2.26 to 3.26 times. This indicates that the company is managing its inventory efficiently, with an average of approximately 2.8 to 3 times per year.

In terms of receivables turnover, the company has shown some fluctuations, with higher values seen in the earlier part of the period under review. An average receivables turnover ratio of around 6 to 8 times indicates that Digi International Inc collects its receivables approximately every 1 to 2 months.

The payables turnover ratio has varied significantly, with values ranging from 5.31 to 11.38 times. A higher payables turnover ratio implies that the company is paying its suppliers more frequently, potentially indicating good relationships or advantageous credit terms.

The working capital turnover ratio has also shown some fluctuations, with values ranging from 1.60 to 6.51 times. This ratio reflects how efficiently the company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.

Overall, Digi International Inc's activity ratios suggest that the company is efficiently managing its inventory, collecting receivables, paying suppliers, and utilizing its working capital to generate revenue. However, there have been fluctuations in some ratios, indicating possible changes in the company's operational efficiency over the period under review.

Average number of days

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 111.84 113.96 121.42 129.95 140.96 159.59 160.51 161.24 155.44 139.26 123.99 129.49 112.92 122.22 136.35 147.42 139.12 126.78 118.01 128.59
Days of sales outstanding (DSO) days 59.94 60.27 59.96 50.78 45.95 42.22 42.20 48.09 47.43 62.38 72.99 56.35 51.73 49.77 54.77 66.05 77.41 72.55 109.39 116.44
Number of days of payables days 49.80 41.94 43.35 32.07 32.49 41.05 40.05 60.98 68.72 63.10 54.64 57.11 58.07 48.72 50.16 60.50 75.72 59.73 47.50 62.87

Based on the data provided, Digi International Inc's activity ratios show trends in its operational efficiency over the past few quarters.

Days of Inventory on Hand (DOH) have generally declined from a peak of 161.24 days in December 2022 to 111.84 days in September 2024. This indicates that the company has been managing its inventory levels more efficiently, possibly through better inventory management practices or stronger demand forecasting.

Days of Sales Outstanding (DSO) have fluctuated over the periods but generally show a decreasing trend from a high of 77.41 days in December 2020 to 59.94 days in September 2024. This suggests that Digi International Inc has been successful in collecting receivables more quickly, which can improve cash flow and liquidity.

Number of Days of Payables reveals a fluctuating trend, indicating that the company's payment terms with suppliers have been changing. There was a notable decrease in days of payables from 75.72 days in March 2020 to a low of 32.07 days in March 2024, which may indicate a shift towards more favorable payment terms for suppliers.

Overall, the decreasing trends in both DSO and DOH, along with the fluctuating but relatively stable trends in payables, suggest that Digi International Inc has been improving its operational efficiency and working capital management. However, it's important to continue monitoring these ratios to ensure sustained efficiency and profitability in the future.

Long-term

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Fixed asset turnover 12.15 13.18 14.57 15.42 15.28 14.82 14.41 14.57 14.07 13.71 12.45 11.82 25.44 24.10 22.45 21.58 24.27 22.07 20.43 19.25
Total asset turnover 0.52 0.53 0.53 0.53 0.53 0.52 0.51 0.48 0.45 0.42 0.39 0.37 0.50 0.49 0.48 0.55 0.53 0.51 0.47 0.45

The fixed asset turnover ratio for Digi International Inc has shown a generally increasing trend over the periods displayed in the table. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue, and an increasing ratio typically indicates improved efficiency in asset utilization.

On the other hand, the total asset turnover ratio has remained relatively stable over the periods provided. Total asset turnover reflects the company's ability to generate sales from its total assets, both fixed and current. A stable total asset turnover may suggest that Digi International Inc has maintained a consistent level of efficiency in generating revenue relative to its total asset base.

Overall, the fixed asset turnover ratio's increasing trend coupled with the stable total asset turnover ratio indicates that Digi International Inc has been effectively utilizing its fixed assets to generate sales while also maintaining a consistent level of efficiency in generating revenue from its total assets. These trends suggest good asset management and operational efficiency within the company.